Determine the bond market to be in equilibrium according to our whole theory of the term structure of interest rates. The current interest rate on one year bonds is 3%, and you believe, as does everyone in the market, that in one year the interest rate on 1-year bonds will be 3.5%. Suppose that there is no term premium on a one-year bond. Assume the term premium equals 0.75% the number of years to maturity, for the two-year bond. The interest rate today on the two year bond is?